IBEC claims businesses need to be able to increase their prices in order to keep growing.

The warning comes after their latest survey shows companies have the potential to create more than 60,000 jobs this year.

The survey noted that companies have to cut prices significantly in order to stay competitive - making it harder for them to contend with high rents and other operating costs.

Fergal O'Brien, Chief Economist with IBEC, said the economy as a whole could benefit from price hikes.

"We see a number of key challenges across the economy at the moment, but while the volume of activity is moving, that's coming on the back of quite aggressive and significant discounting," he said.

"It would be better for both business and the Government - which gets a significant tax take, obviously, when business revenue grows, if there was a bit of a moderate price increase."

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